This is the opposite of negative gearing and occurs when a property yields an above average rental return for the purchase price and/or expenses are lower than average. This means that your return outweighs your expenses, which means you have extra money (or extra income) in your pocket each week.

Positive gearing is where the rental returns are greater than the outgoings including interest on the loan. In addition to potentially high rental yields, fans of positive gearing argue that the cash flow from these properties can be used to fund a whole string of investment properties.

That means that with each property you buy, your income increases, lifting your power to service more debt and invest in yet more property. So theoretically, the capacity of the positively geared investor to borrow money for more properties rises with each purchase, whereas the capacity of the negatively geared investor falls with each purchase.

So to find out more about Positive Gearing or our available stock to see if there is a solution to meet your needs please contact us.